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The Hospital Business Remains 1of HAE’s Key Growth Drivers

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Hospital business’s revenue

In fiscal 3Q18, Haemonetics (HAE) reported revenue of close to $46.7 million in its hospital business, a YoY (year-over-year) rise of ~9.1%. The hemostasis management franchise within the hospital business reported revenue of close to $19.9 million in fiscal 3Q18, a YoY rise of ~17.6%. The cell processing franchise, which is also part of the hospital business, reported revenue of close to $26.8 million in fiscal 3Q18, a YoY rise of ~3.5%.

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The hospital business reported revenue of close to $324.4 million on a YTD (year-to-date) basis in fiscal 2018, a YoY rise of 6.2%. The hemostasis management franchise reported revenue of close to $134.5 million YTD in fiscal 2018, a YoY rise of 14.2%. The cell processing franchise reported revenue of close to $78.9 million, a YoY rise of 1.3%.

The above diagram shows the product line breakup of Haemonetics’s hospital business. All of the company’s products are clinically effective and safe for patients, which results in added economic value for the company.

Segmental performance

Haemonetics’s cell salvage business, which includes products such as Cell Saver and OrthoPat, is the largest product line in the company’s hospital business. This product line, which is currently competing in a mature market, contributed almost $77 million to Haemonetics’s revenue in fiscal 2017. In the cell salvage segment, Haemonetics competes with peers such as Medtronic (MDT), Fresenius (FMS), and LivaNova.

Haemonetics’s hemostasis management business, which includes the TEG product line, is the second-largest product line in the company’s hospital business. This product line, which is currently competing in a fast-growing market, contributed almost $66 million to Haemonetics’s fiscal 2017 revenue. In the hemostasis management business, Haemonetics competes mainly with Instrumentation Laboratory.

Haemonetics’s transfusion management business, which includes products such as SafeTrace Tx, BloodTrack, and HaemoBank, is the third-largest product line in the company’s hospital business. This product line, which is currently competing in an emerging market opportunity, contributed almost $29 million to Haemonetics’s revenue in fiscal 2017. In the transfusion management business, Haemonetics competes mainly with peers Cerner (CERN), Sunquest, Meditech, Msoft, and others.

In the next article, we’ll discuss the future growth prospects for Haemonetics’s hospital business in greater detail.

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